CHAPTER 198

UNEMPLOYMENT COMPENSATION COMMISSION

AN ACT TO AMEND AN ACT ENTITLED "AN ACT TO ESTABLISH A SYSTEM OF UNEMPLOYMENT COMPENSATION FOR THE UNEMPLOYED CITIZENS OF THE STATE OF DELAWARE, WITHOUT LIABILITY ON THE PART OF THE STATE OF DELAWARE, TO BE ADMINISTERED BY A COMMISSION AND ITS NEWLY CREATED AGENCIES, REQUIRING EMPLOYERS TO KEEP RECORDS AND MAKE REPORTS AND CERTAIN EMPLOYERS TO PAY CONTRIBUTIONS BASED ON PAYROLLS, TO PROVIDE MONEYS FOR THE PAYMENTS OF COMPENSATION TO CERTAIN UNEMPLOYED PERSONS, PROVIDING PROCEDURE AND ADMINISTRATIVE DETAILS FOR THE DETERMINATION, PAYMENT AND COLLECTION OF SUCH CONTRIBUTIONS, AND THE PAYMENT OF SUCH COMPENSATION PROVIDING FOR CO-OPERATION WITH THE FEDERAL GOVERNMENT AND ITS AGENCIES, CREATING CERTAIN SPECIAL FUNDS IN THE CUSTODY OF THE STATE TREASURER AND PRESCRIBING PENALTIES FOR THE VIOLATION OF THE PROVISIONS OF THIS ACT," SAID ACT BEING CHAPTER 258 OF VOLUME 41, LAWS OF DELAWARE, 1937.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That sub-section (k) of Section 11 of the Unemployment Law be and the same is hereby amended by adding at the end thereof two new paragraphs, as follows:

The Commission may make its records relating to the administration of this Act available to the Railroad Retirement Board established by Act of the -Congress of the United States of America and may furnish to the said Railroad Retirement Board, at the expense of the said Board, such copies thereof as the said Railroad Retirement Board may deem necessary for its purposes.

The Commission may afford reasonable co-operation with every agency of the United States of America charged with the administration of any Unemployment Insurance or Compensation Law.

Section 2. That sub-section (a) of Section 12 of the Unemployment Compensation Law be and the same is hereby amended by adding at the end thereof a new paragraph, as follows:

The Commission may co-operate with or enter into agreements with the Railroad Retirement Board established by Act of the Congress of the United States of America with respect to the establishment, maintenance and use of free employment service facilities.

Section 3. That sub-section (b) of Section 12 of the Unemployment Compensation Law be and the same is hereby amended by striking out the said sub-section (b) of the said Section 12 and inserting in lieu thereof a new sub-section (b) of Section 12, as follows:

(b) Financing:--All moneys received by this State under the Act of Congress entitled "An Act to Provide for the Establishment of a National Employment System and for Co-operation with the States in Promotion of Such System, and for other Purposes," approved June 6, 1933 (48 Stat. 113; U. S. C., Title 29 Sec. 49 c), as amended, shall be paid into the special "employment service account" in the Unemployment Compensation Administration Fund, and said moneys are hereby made available to the Commission for the Delaware State Employment Service to be expended as provided by this Section and by said Act of Congress.

For the purpose of establishing and maintaining free employment offices, the Commission is authorized to enter into agreements with the Railroad Retirement Board established by Act of the Congress of the United States of America or any other agency of the United States charged with the administration of an Unemployment Insurance or Compensation Law, with any political sub-division of this State or with any private non-profit organization, and as a part of any such agreement, the Commission may accept moneys, services or quarters as a contribution to the Employment Service Account.

Section 4. That sub-section (a) of Section 13 of the Unemployment Compensation Law be and the same is hereby amended

by striking out the said sub-section (a) of the said Section 13 and inserting in lieu thereof a new sub-section (a) of Section 13 as follows:

Section 13. (a) Special Fund:--There is hereby created in the State treasury a special fund to be known as the unemployment compensation administration fund. All moneys which are now or hereafter may be deposited or paid into said fund are hereby appropriated and made available to the Commission. All moneys in this fund shall be expended solely for the purpose of defraying the cost of the administration of this Act, and for no other purpose whatsoever.

The fund shall consist of all moneys appropriated by this State and all moneys received from the United States of America or any agency thereof, including the Social Security Board, the Railroad Retirement Board, the United States Employment Service or from any other source, for such purpose. Moneys received from the said Railroad Retirement Board as compensation for services or facilities supplied to said Board shall be paid into this fund and the employment service account thereof, on the same basis as expenditures are made for such services or facilities from such fund and account.

All moneys in this fund shall be deposited, administered, and disbursed, in the same manner and under the same conditions and requirements as is provided by law for other special funds in the State treasury. Any balance in this fund shall not lapse at any time, but shall be continuously available to the Commission for expenditure consistent with this Act. The State Treasurer shall give a separate and additional bond conditioned upon the faithful performance of his duties in connection with the unemployment compensation administration fund in an amount to be fixed by the Commission and in a form prescribed by law and approved by the Attorney General. The premiums for such bond and the premiums for the bond given by the treasurer of the unemployment compensation fund under Section 9 of this Act shall be paid from the moneys in the unemployment compensation administration fund.

Section 5. That Section 18 of the Unemployment Compensation Law be and the same is hereby amended by striking out all of the said Section 18 and inserting in lieu thereof a new Section 18, as follows:

Section 18. (a) The Commission is hereby authorized to enter into arrangements with the appropriate agencies of other States or the Federal Government whereby individuals performing services in this and other States for a single employing unit under circumstances not specifically provided for in section 2 (i) of this Act, or under similar provisions in the unemployment compensation laws of such other States, shall be deemed to be engaged in employment performed entirely within this State or within one of such other States and whereby potential rights to benefits accumulated under the unemployment compensation laws of several States or under such law of the Federal Government, or both, may constitute the basis for the payment of benefits through a single appropriate agency under terms which the Commission finds will be fair and reasonable as to all affected interests and will not result in any substantial loss to the fund.

(b) The commission is also authorized to enter into arrangements with the appropriate agencies of other States or of the Federal Government (1) whereby wages or services, upon the basis of which an individual may become entitled to benefits under the unemployment insurance or compensation law of another State or of the Federal Government, shall be deemed to be wages for employment by employers for the purposes of Section 3 and Section 4 (e) of this Act, provided such other State agency or agency of the Federal Government has agreed to reimburse the unemployment compensation fund for such portion of benefits paid under this

Act upon the basis of such wages or services as the Commission finds will be fair and reasonable as to all affected interests, and (2) whereby the Commission will reimburse other State or Federal agencies charged with the administration of unemployment insurance or compensation laws with such reasonable portion of benefits, paid under the law of any such other State or of the Federal Government upon the basis of employment or wages for employment by employers, as the Commission finds will be fair and reasonable as to all affected interests.

Reimbursements so payable shall be deemed to be benefits for the purposes of Sections 3 (e) and 9 of this Act, but no reimbursement so payable shall be charged against any employer's account for the purposes of Section 7 of this Act.

The Commission is hereby authorized to make to other State or Federal agencies and receive from such other State or Federal agencies, reimbursements from or to the unemployment compensation fund, in accordance with arrangements pursuant to this section.

Approved April 14, 1939.